$WALMEX* (-0,35%)
$WMT (-1,47%) Why did Walmart Mexico crash like this? I can't find any information about it.
Wal-Mart MexicoMX01WA000038WALMEX*WALMEX*
Walmart Mexico, known as Walmex $WALMEX* (-0,35%) , is embarking on an ambitious e-commerce strategy aimed at doubling its sales within the next decade. Ignacio Caride, who recently took the helm as CEO after a successful tenure at Mercado Libre $MELI (-0,23%) , emphasizes that Walmex is evolving beyond traditional retail. His vision includes creating a seamless integration of physical stores and online shopping, while also expanding into healthcare and financial services.
The e-commerce landscape in Mexico presents a significant opportunity, with the sector growing rapidly. In 2023, it surged by 25%, reaching around 658 billion pesos (approximately $34 billion), but still holds a modest penetration rate of just 13%. This is considerably lower than Brazil's, indicating ample room for growth. Currently, Amazon and Mercado Libre dominate the market with respective shares of 39% and 18%, while Walmart lags behind at 11%.
To compete effectively, Caride acknowledges the need to modernize Walmex's legacy IT systems, which were designed for a retail-centric approach. He aims to enhance the company's digital capabilities to better serve customers and improve cross-selling opportunities. This includes initiatives like collecting customer mobile numbers at checkout to foster a rewards system, which will help Walmart understand shopping behaviors better.
Despite facing challenges, such as increasing competition from local players like Chedraui and the need to adapt to changing consumer preferences, Walmex reported a solid revenue growth of 6.4% in the second quarter of 2024. The company is also investing heavily in technology and new store openings, with plans to launch over 1,000 stores in the next five years.
Caride's approach reflects a broader trend in the retail industry, where traditional companies are striving to integrate their online and offline operations. This transformation is crucial as the cost of doing business rises, particularly in Mexico, where wage increases are significant.
As Walmex navigates this transition, it will be interesting to see how effectively it can leverage its extensive physical presence and customer base to enhance its e-commerce offerings. What are your thoughts on Walmart Mexico's strategy and the potential for growth in the Mexican e-commerce market?
Bolsa de México is also really interesting (they also own walmex to 1/3? I think Like 30ish%)
I will soon have some money available to invest again, which I would like to use for additional purchases.
First and foremost, I want to further expand my ETF positions.
I would particularly like to buy more of my individual stocks at the moment:
- Canadian National Railway $CNR (-1,26%)
Nestlé $NESN (-0,89%)
PepsiCo $PEP (-0,84%)
Daikin Industries $6367 (+1,43%)
Walmart de Mexico $WALMEX* (-0,35%)
These are all long-term positions in my portfolio, which I think are currently valued quite favorably.
What do you think of these 5 companies?
I am grateful for any input!
Your Burner
Depot update:
I have again exchanged a few of my 45 long-term individual positions for stocks that I simply feel more comfortable with for the next few years.
Once again, a brief summary of my strategy:
1) I want to bring the two large ETF positions to 25% weighting each, as the core of the portfolio.
2) I would like to hold and save the 45 individual positions for the long term, as I consider them to be good buy & hold investments that have the potential to beat the market in the long term.
3) I would like to hold cryptos at a weighting of around 5%. If the weighting exceeds 10%, I halve it again and invest the money freed up in equities.
Considerations/plans:
- Additional purchases are planned for positions that are not yet as large for me, for example. $NOC (-0,02%) I would like each position to be at least €600
- Also bid $V (-1,68%)
$CNR (-1,26%) and $WALMEX* (-0,35%) are currently offering me good opportunities for additional purchases - I am currently considering "only" weighting the two ETFs with 20% each and also adding the $CSNDX (+1,71%) with a 10% weighting... But I don't think I will do that, the heavyweights from the Nasdaq 100 are already well weighted in my portfolio anyway
What do you think about the portfolio, what would you change?
PS: I'm not actively looking to collect a lot of dividends and I'm aware of the high number of individual stocks, so I can live with that.